Charlie Sykes: Sykes Writes

THE ECONOMIC GENIUS OF LEE HOLLOWAY

By Charlie Sykes

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FACTS PROVE COUNTY EXECUTIVE’S ‘TAX ISLAND’ CLAIM IS FALSE

Adjusted for gas prices, most County residents would still get better deal within Milwaukee County

Milwaukee, WI – Milwaukee County Board Chairman Lee Holloway issued the following analysis after the County Executive vetoed an advisory referendum on taxes and claimed a small increase in the sales tax (and decrease in the property tax) would create a tax island in Milwaukee County. The County Executive chose a Greenfield camera store to make the announcement.

At today’s gas prices, a 1-cent increase in the sales tax would not create a tax island. For a camera costing $500, the sales tax in Milwaukee County would rise by $5. But, factoring in our current gasoline prices, it would be slightly more costly for many Milwaukee County residents to drive to the nearest camera stores in Waukesha County . Using the County Executive’s example of Art’s Cameras Plus on S. 76th Street in Greenfield, the nearest comparable camera stores outside of Milwaukee County are: 

* Art’s Cameras Plus, 2130 W. Silvernail Road, Pewaukee (18 miles)

* Best Buy, 19555 W Bluemound Rd, Brookfield (14 miles)

* Mike Crivello’s Camera & Imaging Center, 18110 W. Bluemound Road, Brookfield (12 miles)

At a minimum, the nearest camera store outside of Milwaukee County is 24 miles roundtrip from Art’s Greenfield location. If an average vehicle gets 20 miles/gallon and fuel is $4.29/gallon, then the $5 in sales tax savings for a $500 camera would be offset by an increase in fuel of $5.14, making the Waukesha County purchase slightly more expensive than purchasing at the Art’s Camera store in Greenfield .

If the customer would choose to drive to the Art’s Camera location in Pewaukee (36 miles roundtrip from the Greenfield location), fuel costs would increase by $7.72, making the Milwaukee County purchase $2.72 cheaper.